Coinbase Breaks $100 Billion Valuation After Stock Hits Record $394 Amid Bitcoin-Fuelled Market Surge

Coinbase Hits New Market Cap Milestone Amid Bitcoin’s Surge

The largest US cryptocurrency exchange, Coinbase, reached a fresh peak in its stock value during Monday’s trading session, propelled by Bitcoin’s recent all-time highs.

Shares closed up 1.8% at $394.01, touching an intraday high of $398.50, pushing the company’s market capitalisation to roughly $100.36 billion — the highest in its history.

Why Is Coinbase’s Stock Surging So Rapidly?

Over the past month, Coinbase’s share price has soared by about 50%, boosted by the successful IPO of Circle Internet Group and favourable regulatory developments in the United States.

The exchange also marked a historic moment on 19 May when it was added to the S&P 500 index, becoming the first crypto-focused company to join the benchmark.

This recognition from traditional financial markets reflects the growing mainstream acceptance of digital assets.

Analysts have responded positively, with Bernstein raising Coinbase’s price target to $510 and describing the platform as the “Amazon of crypto financial services.”

Matt Hougan, Chief Investment Officer at Bitwise, has even predicted that Coinbase could eventually become a trillion-dollar company.

In a social media post earlier this month, he wrote,

“Pick a company currently valued below $100 billion that has the highest chance of being a $1+ trillion company some day. I’ll start: Coinbase at $61 billion.”

Stablecoins Fueling Coinbase’s Future Earnings

Beyond the stock market buzz, Coinbase has been steadily diversifying its revenue.

Recent analysis shows that its non-transactional income reached $772 million in the first quarter alone, signalling growing stability beyond just trading fees.

Experts highlight stablecoins — digital tokens pegged to the US dollar — as a key driver of this trend.

Benchmark analyst Mark Palmer notes that revenues from stablecoins could allow Coinbase to reduce its reliance on trading, which faces intense competition.

The importance of stablecoins was further highlighted by the US Senate’s approval of legislation supporting dollar-pegged stablecoins as a promising payment method.

Republican leaders in the House are pushing for a stablecoin regulatory bill this week, aiming to set clear rules for the crypto industry and potentially reshape the digital asset landscape in the US.

This legislative momentum has been welcomed by industry supporters as a major step towards wider adoption.

Political Support Gives Crypto a New Boost

The recent rally in Coinbase shares also coincided with stronger political backing for cryptocurrency.

President Donald Trump, who has expressed support for digital assets, is prioritising crypto regulation during his second term, promising to make the US the “crypto capital” of the world.

His family’s reported involvement in crypto ventures has stirred controversy, yet this political climate has nonetheless helped lift sentiment around the sector.

A Remarkable Recovery Since the FTX Collapse

Coinbase’s stock performance has come a long way since late 2022, when it plummeted to a record low amid the FTX collapse and growing scepticism about digital assets.

Since then, shares have rallied more than 1,000%, reflecting a recovery in cryptocurrency markets and renewed confidence in the industry’s prospects.

The firm’s addition to the S&P 500 and the anticipated regulatory clarity around stablecoins signal a turning point for Coinbase, cementing its role not just as a crypto exchange but as a mainstream financial player.

The months ahead will be closely watched as the company continues to navigate a changing landscape shaped by innovation, politics, and investor optimism.